Title: Between Developmental and Clientelist States: Local State-Business Relationship in China
Abstract:This paper investigates the changing nature of state-business relations in China based on its recent privatization experience. Drawing on an analytical framework based on statist literature, this stud...This paper investigates the changing nature of state-business relations in China based on its recent privatization experience. Drawing on an analytical framework based on statist literature, this study seeks to explain why pervasive governance problem occurred during the privatization of local government-owned firms. The two contributing factors are the state’s declining capacity to regulate the market and its reduced autonomy from the emerging elites. Consequently, local states were transformed from those in which there was “embedded autonomy” to those with a “clientelistic” form. This study questions whether the conventional wisdom that local states have played a positive role in China’s economic development is still valid. It provides a more nuanced understanding of cronyism in the relationship between the Chinese Communist Party and capitalists.Read More
Publication Year: 2010
Publication Date: 2010-08-12
Language: en
Type: article
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Cited By Count: 6
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